When the landowner sells their self-use residential land, the land value increment tax on the portion of urban land not exceeding 3 acres or non-urban land not exceeding 7 acres shall be levied at a rate of 10% of the total land value increment for that portion. For the portion exceeding 3 acres of urban land or 7 acres of non-urban land, the tax shall be levied according to the tax rates specified in the preceding article.
The provisions of the preceding paragraph do not apply if the land was used for business purposes or rented out within one year before the sale.
The provisions of the first paragraph do not apply if the assessed value of the self-use residence is less than 10% of the assessed present value of the land it occupies. However, this does not apply if the construction of the self-use residence was completed for one year or more.
The landowner who pays the land value increment tax according to the rate specified in the first paragraph may do so only once in the lifetime
After applying the provisions of the preceding paragraph, if the landowner sells their self-use residential land again and meets the following conditions, the once in the lifetime restriction does not apply:
1. The area of urban land sold does not exceed 1.5 acres, or the area of non-urban land sold does not exceed 3.5 acres.
2. At the time of sale, neither the landowner, their spouse, nor their minor children own any other houses besides the self-use residence in question.
3. The land has been held for six years or more before the sale.
4. The landowner, their spouse, or minor children have had household registration in the location of the self-use residence and have held the residential house continuously for six years or more before the sale.
5. The land has not been used for business purposes or rented out within five years before the sale.
Should the aforementioned provisions result in a substantial loss of tax revenue for the municipal and county (city) governments, the central government shall compensate for the loss until the amendment to the Act Governing the Allocation of Government Revenues and Expenditures expands the scale of centrally allocated tax funds. This compensation is not subject to the restriction of Article 23 of the Budget Act concerning the prohibition of using public debt revenue for regular expenditures.
The calculation of the aforementioned substantial loss shall be decided by the central competent authority together with the municipal and county (city) governments through consultation.